SASOL Integrated Report 2025_Final_28 August 2025 - Flipbook - Page 28
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
PORTFOLIOS
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
STRATEGY continued
RESILIENCE OF OUR PORTFOLIO
SIGNPOSTS
Signposts include:
A South African carbon
regulation including carbon
tax recycling and carbon
budget
A Regulatory and policy changes
including RED II, flexible
allocation, carbon border tax
design
A Geopolitical indicators
A Macroeconomic drivers
such as oil price, rand/dollar
exchange rate, inflation,
economic growth, product
prices, feedstock price
A Sustainability obligation
and associated costs of
investment required
A Partnering and relationship
trends and requirements
A The pace of technology
development
Scenario updates
We leverage national and international scenario databases to create and review a balanced but challenging set of global and South African scenarios annually to inform internal
strategy processes and decision-making.
Updates to our scenarios focused on revisions to the short to medium term globally and locally. Global economic outlook has been updated to reflect recent short- to mediumterm developments, potential trade or tariff wars, geopolitical uncertainties, investment, productivity dynamics and revised data.
It should be noted that scenarios are not predictions or forecasts, but rather tools to assist in managing Sasol’s responses to future uncertainty.
Scenarios are hypotheses of the future, informed by data from various sources, constructed using models and contain insights from experts in relevant fields. All scenarios should
preferably be read together as representing a complete picture of the future, told along different storylines. It is unlikely that a single scenario will materialise on its own.
CURRENT PATHWAY (TEMPERATURE INCREASE 2 – 3°C)
FRAGMENTED WORLD (TEMPERATURE INCREASE >3°C)
• Updates include the changes to the trade landscape – which will be longer lasting and
impacting inflation, logistics costs, GDP.
• Higher tariffs, increased conflicts and tensions – result heightened uncertainty and a
more fragmented global economy.
• Uneven global economic recovery, increased geopolitical risks, regulatory uncertainty
and changing country priorities, slow the climate change mitigation progress.
• New geographic trade relationships raise security of supply concerns for energy,
commodities and components, increasing the cost of minerals and metals key to the
energy transition, further increasing affordability challenges.
• Greater investments are required in adaptation efforts, which are projected to increase
over time.
COOPERATIVE WORLD (TEMPERATURE INCREASE 1,5 – 2°C)
NET ZERO WORLD (TEMPERATURE INCREASE ~1,5°C)
• Strong cooperation supports rapid technology advances in solar, wind and batteries,
allowing technology transfer to developing nations and cost reduction.
• Energy efficiency gains, lifestyle changes, legislation, policy and political commitments
reduce energy consumption.
• Many countries are investing in mitigation efforts; but some climate change
adaptation efforts are required, especially in developing countries.
• This scenario is built backwards from the global temperature goal of ~1,5°C.
• It assumes that the required technologies are in place, policy and regulation are aligned
and constructive, financial investments are available at favourable rates, supply chains
expand as required and all countries are completely aligned on and working towards
the 1,5°C ambition.
• There are fewer climate change adaptation concerns.
A Financing and funding trends
and requirements
SASOL INTEGRATED REPORT 2025
• Adaptation costs are significant, related to more frequent and extreme weather events.
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